What is the threshold for a couple filing jointly, after which up to 85% of Social Security income may be taxable?

For couples filing jointly, the threshold at which up to 85% of their Social Security income may become taxable is indeed $44,000. This threshold is significant because it determines how much of the Social Security benefits will be included in taxable income.

When calculating whether Social Security income is taxable, the IRS considers a couple's combined income, which includes adjusted gross income, tax-exempt interest, and half of the Social Security benefits received. If the combined income exceeds $44,000, the IRS applies a formula to determine how much of the Social Security benefits will be taxable. Specifically, depending on the amount of income above the threshold, up to 85% of the Social Security benefits could be subject to taxation.

Understanding this threshold is crucial for tax planning and helps taxpayers anticipate their tax liabilities associated with retirement benefits.